Circle of competence

Their wordsEvery person is going to have a circle of competence. And it’s going to be very hard to advance that circle.

Their wordsIf you play games where other people have the aptitudes and you don’t, you’re going to lose. And that’s as close to certain as any prediction that you can make. You have to figure out where you’ve got an edge. And you’ve got to play within your own circle of competence.

Their wordsThe size of that circle is not important. What is important is knowing when you are approaching the perimeter.

Their wordsWithin your circle of competence, you operate with an advantage. As you approach the perimeter (the limitations of your knowledge), your advantage starts to reduce. As you cross the perimeter, not only does your advantage vanish, but it transfers to other people.

Their wordsAs we cross the perimeter from what we know to what we don’t, confidence does not diminish as fast as competence. The biggest risk when operating outside of your circle of competence is what you don’t see.

Their wordsIt did not hurt Mrs. B to have such a narrow area of competence. In fact, one could argue the opposite. Her rigid devotion to that area allowed her to focus.

Their wordsTo improve the odds of success in life and business, understand the perimeter of your circle of competence and operate well inside. Over time, work to expand that circle, but don’t fool yourself about where the perimeter is, and never be afraid to say, “I don’t know.”

Their wordsIn this world, we have two kinds of knowledge. One is Planck knowledge—the people who really know. They’ve paid the dues, they have the aptitude. Then, we’ve got chauffeur knowledge—they have learned to prattle the talk and they have a big head of hair. They may have fine timbre in the voice. They really make a hell of an impression. But in the end, they’ve got chauffeur knowledge.

Their wordsArgue like you’re right and listen like you’re wrong. Have the humility to know what you don’t know and the curiosity to pursue knowledge and wisdom.